Photo: Foster Contracting
The past few days of the Raj Rajaratnam insider trading trial have focused on the testimony of his old friend-turned-government-witness, Rajiv Goel (except for, of course, the noted Lloyd Blankfein interruption).Yesterday, Goel told jurors how Raj had, on one occasion, blasted him for not keeping the Galleon chief up to date on Intel’s M&A activity. (So far, the trial has revealed that Raj never begged for information, rather he engineered relationships with tipsters so that they wanted to give it to him, witnesses have testified.)
Goel worked for Intel’s Treasury unit and is a monumental cog in the government’s case against Raj.
According to Bloomberg,
Goel… recounted a call from Rajaratnam in 2009 after Intel acquired Wind River Systems Inc. Rajaratnam complained that Goel hadn’t told him about the deal, Goel said.
“He said, ‘How come you didn’t tell me?'” Goel testified. He adding that Rajaratnam also said, “Fortunes are made and lost on this” type of information.
Also that year, Rajaratnam yelled at Goel when Goel couldn’t uncover Intel financial data, he testified. “What kind of executive are you?” Rajaratnam shouted, according to Goel.
Raj’s defence, however, argues that their client only traded on information about Intel and other companies based on what was already in the public domain.
On the cross, Raj’s defence attorney Terence Lynam questioned Goel about the motive behind is testimony.
“I’m asking whether you understand that that’s your best chance of getting a lower sentence,” Lynam said, according to Bloomberg. Goel said yes.
Lynam also made a point of highlighting that Raj and Goel often joked around about Goel’s employer — “that the two men carried on ‘a game where you would talk about how Intel was going to do.'”
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